Wall Street Zen Upgrades Dollar Tree (NASDAQ:DLTR) to Buy

Key Points

• Wall Street Zen upgraded Dollar Tree from “hold” to “buy,” adding to a flurry of analyst activity around the stock after its latest earnings report.
• Dollar Tree beat expectations in Q1, reporting $1.74 EPS versus $1.53 expected and $4.98 billion in revenue, with sales up 7.2% year over year.
• Analyst sentiment remains mixed overall, with the consensus still at “Hold” and an average price target of $119.48 despite some recent target increases and upward earnings revisions.

Dollar Tree (NASDAQ:DLTR - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

A number of other research analysts also recently commented on the stock. Barclays dropped their price objective on shares of Dollar Tree from $149.00 to $131.00 and set an "overweight" rating for the company in a research note on Tuesday, May 26th. Citigroup dropped their price objective on shares of Dollar Tree from $132.00 to $125.00 and set a "neutral" rating for the company in a research note on Tuesday, March 17th. BMO Capital Markets reaffirmed an "underperform" rating on shares of Dollar Tree in a research note on Tuesday, March 17th. BNP Paribas Exane upped their price objective on shares of Dollar Tree from $88.00 to $98.00 and gave the company an "underperform" rating in a research note on Friday, May 29th. Finally, Rothschild & Co Redburn set a $165.00 price objective on shares of Dollar Tree and gave the company a "buy" rating in a research note on Tuesday, February 17th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Dollar Tree has an average rating of "Hold" and an average price target of $119.48.

Dollar Tree Price Performance

NASDAQ:DLTR opened at $108.80 on Friday. Dollar Tree has a 12-month low of $84.71 and a 12-month high of $142.40. The company's 50-day moving average is $101.10 and its two-hundred day moving average is $114.19. The company has a current ratio of 1.16, a quick ratio of 0.39 and a debt-to-equity ratio of 0.84. The firm has a market cap of $20.91 billion, a price-to-earnings ratio of 17.00, a price-to-earnings-growth ratio of 1.33 and a beta of 0.66.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $1.74 EPS for the quarter, beating analysts' consensus estimates of $1.53 by $0.21. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. The company had revenue of $4.98 billion during the quarter, compared to the consensus estimate of $4.96 billion. During the same quarter in the prior year, the company posted $1.26 EPS. The company's quarterly revenue was up 7.2% compared to the same quarter last year. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Research analysts expect that Dollar Tree will post 6.98 EPS for the current year.

Institutional Trading of Dollar Tree

Institutional investors and hedge funds have recently bought and sold shares of the business. Cullen Frost Bankers Inc. acquired a new stake in Dollar Tree during the 4th quarter worth approximately $25,000. Reflection Asset Management acquired a new stake in Dollar Tree during the 4th quarter worth approximately $25,000. Covestor Ltd increased its position in Dollar Tree by 60.9% during the 4th quarter. Covestor Ltd now owns 222 shares of the company's stock worth $27,000 after purchasing an additional 84 shares in the last quarter. YANKCOM Partnership acquired a new stake in Dollar Tree during the 4th quarter worth approximately $31,000. Finally, Wilkerson Advisory Group LLC increased its position in Dollar Tree by 80.1% during the 1st quarter. Wilkerson Advisory Group LLC now owns 263 shares of the company's stock worth $29,000 after purchasing an additional 117 shares in the last quarter. Institutional investors and hedge funds own 97.40% of the company's stock.

Key Headlines Impacting Dollar Tree

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Gordon Haskett upgraded Dollar Tree from “reduce” to “hold” and assigned a $115 price target, implying modest upside from recent trading levels. This suggests some analysts see less downside risk after the company’s latest results.
• Positive Sentiment: KeyCorp raised its FY2027 EPS estimate to $7.05 and FY2028 EPS estimate to $7.70, signaling confidence in Dollar Tree’s longer-term earnings power and margin outlook.
• Positive Sentiment: Analyst coverage following the Q1 earnings call is still active, with investors focused on the main questions around growth, pricing, tariffs, and margin sustainability. Article Title
• Neutral Sentiment: Deutsche Bank nudged its price target up to $102 from $99 but kept a “hold” rating, indicating cautious optimism rather than a bullish call. Article Title
• Neutral Sentiment: Brokerage consensus remains “Hold,” which fits a market that sees Dollar Tree as fairly valued after its post-earnings move and recent analyst revisions. Article Title
• Negative Sentiment: KeyCorp trimmed some near-term quarterly EPS estimates, including Q3 2027 and Q4 2027, showing that not all analysts are becoming more bullish on the company’s shorter-term earnings trajectory.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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